Close X
Thursday, November 14, 2024
ADVT 
National

Statistics Canada says gross domestic product grew by 0.3 per cent in July

Darpan News Desk IANS, 30 Sep, 2015 12:43 PM
    OTTAWA — Looking to shake off its slump, the Canadian economy grew for a second consecutive month in July, helped by a continuing rebound in the oilsands following slowdowns related to maintenance and forest fires.
     
    Statistics Canada said Wednesday that real gross domestic product grew 0.3 per cent in July, topping the 0.2 per cent growth economists had expected, according to a consensus forecast compiled by Thomson Reuters.
     
    However, the federal agency revised downward its result for June to show growth of 0.4 per cent compared with an initial reading of 0.5 per cent.
     
    BMO senior economist Benjamin Reitzes said in a report that GDP growth for the third quarter is tracking on a range of 2.5 to 3.0 per cent.
     
    "The back-to-back gains in GDP (in June and July) suggest that the economy rebounded firmly from the very weak first half of 2015," Reitzes said.
     
    Canada briefly fell into recession in the first half after five consecutive months of contraction produced two quarters of negative growth.
     
    Growth in June reversed the trend and many economists expect the economy to perform better in the second half of the year. However TD Bank economist Diana Petramala cautioned that while the third quarter was looking stronger than expected, questions remain about whether the pace will be sustained in the last three months of the year.
     
    Petramala noted the Pan Am Games in Toronto and the FIFA Women's World Cup likely boosted the economy in June and July.
     
    "The rebound in oil-related sectors has been actually quite strong as well, but oil prices took another leg down in July so some of that optimism might be temporary heading into August and September," she said.
     
    The economic report came in the midst of a federal election that has featured the economy has a key issue for all the parties.
     
    Conservative Finance Minister Joe Oliver touted his government's plan.
     
    "Canada is going to have solid strong growth in the second half of the year and experience positive growth for the full year," Oliver said.
     
    "We've been talking about how our low tax plan for jobs and growth is working, that we must stay the course, particularly in the context of global instability."
     
    But Unifor economist Jim Stanford said the rebound in the energy sector would not be repeated.
     
    "Claiming victory because GDP is growing again after a recession is a bit like commenting on how good it feels to stop beating your head against the wall," Stanford said.
     
    "And while the June and July GDP numbers are positive, in my view it is too early to conclusively declare the recession over."
     
    Driving the growth in July was a 9.1 per cent improvement in non-conventional oil extraction, which includes the Alberta oilsands, following a 7.0 per cent gain in June. The move follows maintenance shutdowns and production difficulties earlier this year. Conventional oil and gas extraction was up 0.8 per cent in July compared with June.
     
    Meanwhile, manufacturing output rose 0.6 per cent in July, while the finance and insurance sector rose 0.8 per cent for the month.
     
    Wholesale trade fell 0.4 per cent for July due to drops in farm products, petroleum products and miscellaneous products, while retail trade rose 0.2 per cent, helped by the auto sector and clothing and clothing accessories stores.
     
    The arts and entertainment sector fell 1.9 per cent, following a 6.8 per cent increase in June due to the FIFA Women's Soccer World Cup hosted by Canada.
     
    Construction slipped 0.1 per cent lower in July.

    MORE National ARTICLES

    One Winning Ticket Sold In Brampton, Ont., For $60 Million Lotto Max Jackpot

    One Winning Ticket Sold In Brampton, Ont., For $60 Million Lotto Max Jackpot
    The grand prize is the largest in Lotto Max history and lottery officials say the winning ticket was sold in Brampton, Ont.

    One Winning Ticket Sold In Brampton, Ont., For $60 Million Lotto Max Jackpot

    Why Cheap Pills From Canada Have Become Political Issue In U.S. Again

    Why Cheap Pills From Canada Have Become Political Issue In U.S. Again
    A dermatologist prescribes what used to be a cheap generic drug. Then comes the shock at the pharmacy when it turns out a little tube of Clobetasol cream now costs $300.

    Why Cheap Pills From Canada Have Become Political Issue In U.S. Again

    No Injuries After Buffalo Airways Cargo Plane Crashes In Northwest Territories

    No Injuries After Buffalo Airways Cargo Plane Crashes In Northwest Territories
    No one was injured when a cargo plane made emergency landing northwest of Yellowknife.

    No Injuries After Buffalo Airways Cargo Plane Crashes In Northwest Territories

    Alleged Killer of 3 Ex-Girlfriends Basil Borutski's Refusal To Sign Probation Order Was A 'Message'

    Alleged Killer of 3 Ex-Girlfriends Basil Borutski's Refusal To Sign Probation Order Was A 'Message'
    Amanda Dale, executive director of the Barbra Schlifer Commemorative Clinic, said Basil Borutski's decision should have been cause for concern.

    Alleged Killer of 3 Ex-Girlfriends Basil Borutski's Refusal To Sign Probation Order Was A 'Message'

    Liberals Plan For Surplus By End Of First Term Scrutinized By Opponents

    Liberals Plan For Surplus By End Of First Term Scrutinized By Opponents
    The three major federal party leaders were away from the campaign spotlight Saturday, but the election stage was occupied by the Liberals who released a full costing of their campaign promises.

    Liberals Plan For Surplus By End Of First Term Scrutinized By Opponents

    Rob Ford Was 'Reckless' When He Knocked Over Councillor: Integrity Commissioner

    Toronto's integrity commissioner says then-mayor Rob Ford was "unnecessarily reckless" when he accidentally knocked over a city councillor during a televised high-stakes meeting two years ago.

    Rob Ford Was 'Reckless' When He Knocked Over Councillor: Integrity Commissioner